Homebuilders: Go West for the Good Buys

The nation's house builders are making money out West

San Diego

Like San Francisco, Toll Brothers is one of the top home builders in the area. A luxury builder, its average home price in 2012 was $573,000 — at least $200,000 more than any of the other builders mentioned in this article. It doesn’t need to sell nearly as many homes to qualify for the Builder 100. With just 3,286 closings in 2012, it managed to generate $1.9 billion in revenue, placing it fifth among the country’s top builders.

In the second half of 2013 Toll Brothers is experiencing a slowdown in new home sales as its customers digest the mortgage rate increase from 3.5% to 4.75%. Long-term, it feels the new home market is going through a slight pause but business will ultimately begin to pick up once more. InvestorPlace contributor Ian Harvey provides a good overview of why the company’s attractive. If you’re a luxury home builder, you have to be in this market.